This paper considers a class of migration dynamics with forward-looking agents
in a multi-country solvable variant of the core-periphery model
of Krugman (Journal of Political Economy99 (1991)).
We find that,
under a symmetric externality assumption,
our static model admits a potential function,
which allows us to identify a stationary state
that is uniquely absorbing and globally accessible under the perfect foresight dynamics
whenever the degree of friction in relocation decisions is sufficiently small.
In particular,
when trade barriers are low enough,
full agglomeration in the country with the highest barrier
is the unique stable state for small frictions.
New aspects in trade and tax policy that arise
due to forward-looking behavior are discussed.
Journal of Economic Literature Classification Numbers: C61, C62, C73, F12, R12, R23.